A new report by the Urban Institute found households of color will drive the net growth in home ownership across the country. Between 2020 and 2040, new household formation will lead to almost 7 million new homeowners. The report predicts 4.8 million more Hispanic homeowners, 2.7 million more Asian and other homeowners, 1.2 million more Black homeowners and 1.8 million fewer white homeowners. Changes in household formation and home ownerships rates have important implications for state housing markets and economies.
North Carolina is expected to see a 20% increase in household growth between 2020 and 2040, adding almost 880,000 new households. The state is projected to become increasingly diverse, driven primarily by an increase in Hispanic households. In 2020, North Carolina was composed of 70% white households, 21% Black households, 5% Hispanic households and 4% Asian and other households. By 2040, the report forecasts that 61% of households will be white, 21% of households will be Black, 10% of households will be Hispanic, and 7% of household will be Asian and other.
Source: Urban Institute projections based on decennial Census and American Community Survey data
Note: The report uses four groups: Hispanic, non-Hispanic white, non-Hispanic Black, and non-Hispanic people of other races which includes Asians, American Indians, Alaska Natives, Native Hawaiians, other Pacific Islanders, and multiracial individuals.
The home ownership rate in North Carolina is expected to fall from 66% in 2020 to 64% in 2040 but will remain higher than in the nation overall. The change in home ownership rate will differ by race and ethnicity with Hispanic households experiencing 5% gain in home ownership while Black and white households will see a 2% decline. Households of other races are expected to see a 2% increase in home ownership.
Source: Urban Institute projections based on decennial Census and American Community Survey data
Note: The report uses four groups: Hispanic, non-Hispanic white, non-Hispanic Black, and non-Hispanic people of other races which includes Asians, American Indians, Alaska Natives, Native Hawaiians, other Pacific Islanders, and multiracial individuals.
Despite gains in home ownership among households of color, gaps in home ownership rates by race are predicted to continue without intervention. Providing down payment assistance and access to mortgage credit has been shown to reduce the barriers to home ownership for low-income households. The North Carolina Housing Finance Agency offers an array of financing options, including mortgages and down payment assistance, to make buying a home affordable and accessible.
To learn more visit the home buyers section of www.HousingBuildsNC.com.
